Siza Mzimela: New Transnet Freight Rail CEO is an uncompromising leader

Siza Mzimela may be scholarly, diplomatic and subscribing to a consultative leadership approach, but when it comes to business ethics, her intolerance for bad corporate governance has seen her standing up to powerful political figures – at great risk to her illustrious aviation career.

Mzimela, the new Transnet Freight Rail (TFR) chief executive, had brushes with then public enterprises minister Malusi Gigaba, his advisors and Gupta-linked business associates, whose interests she refused to serve during her uneasy tenure as group CEO at SA Airways (SAA) between 2010 and 2012. This resulted in her resignation.

Testifying last year before the Commission of Inquiry into State Capture, Mzimela laid bare before Deputy Chief Justice Raymond Zondo her abhorrence of undue interference in corporate governance at SAA during the turbulent Jacob Zuma presidency, marked by political meddling in the running of state-owned enterprises (SOEs).

It emerged during the hearings how Gigaba pressured SAA for the realisation of a bizarre deal between the national carrier and the Gupta-linked Jet Airways that would lead to SAA relinquishing the lucrative Johannesburg-Mumbai route – a move which former board chair Cheryl Carolus and Mzimela resisted.

According to Carolus, the Johannesburg-Mumbai route was Gigaba’s top priority when he replaced Barbara Hogan at public enterprises.

Carolus, who assigned Mzimela and the board’s head of audit to explain the board’s stance in opposing the Jet Airways takeover of the route, relived before Zondo the kind of disrespect and abuse endured by Mzimela from Gigaba.

At one stage, Gigaba made Mzimela and the SAA team wait for three hours for “two Indian gentlemen” and Jet Airways chair Naresh Goyal’s arrival before the start of a meeting, with Gigaba taking a back seat, allowing Jet Airways to drive the discussion.

The last straw was the second round, also attended by Goyal, where Gigaba’s legal advisor, Siyabonga Mahlangu, berated Mzimela for not closing the route, claiming it “wasted money”.

In an interview with Saturday Citizen on how SOEs could be better run, Mzimela said businesses – whether public or privately owned – could only thrive, be efficient and profitable if headed by skilled boards and executives, without interference.

“It would be commendable if shareholders observed governance boundaries and limited interference.

“In order to thrive, SOEs need a high degree of efficiency and agility is critical, with boards and executives being entrusted to oversee the delivery of goals agreed upon,” said Mzimela.

In response to critics claiming she lacked depth in the rail transport logistics – a terrain which has for years been male-dominated – she said: “Airlines are by far one of the most complex transport businesses to run.

“Having led large global teams in dynamic industries and ensuring efficient operation in highly competitive spaces, is definitely something that is not new or overwhelming to me.

“It is unfortunate that women leaders are hardly supported and that such questions are either asked to drive political agendas, or reserved to undermine the credibility of women who have worked extremely hard to get to where they are.

“Men hardly get asked if they can handle a role. I was appointed because I am qualified, meaning I can handle it. I have experience in global transport and economics. All my years of work will not be undermined for any agenda.”

Describing Mzimela as “the absolute epitome of ethical leadership in South Africa”, University of the Free State chancellor and former Business Leadership South Africa CEO Bonang Mohale, said: “There can be no doubt that SA Express – where she was interim CEO – would have imploded much earlier than it did, had it not been for her wholesomeness, skill, commitment, acumen and her integrity.

“Any criticism of her ability to head TFR is not only unwarranted, but completely disingenuous and uninformed.

“The combination of her experience in the private sector, entrepreneurship and SOEs is unchallenged.

“Only an ill-informed or malicious person would say she does not have the requisite skills and experience to run the Transnet business unit.

“Moving goods efficiently is essential to anchor this economy for its next phase of industrialisation and Mzimela’s experience at both SAA and SA Express, show that she is more than capable of doing just that.

“Critics who think that airlines are only about flying passengers rather than complex supply chain management – moving people and freight – completely misunderstand the fields she has excelled in.”

Asked about her legacy at SAA and SA Express, Mzimela cited several successes, which included leaving the airline in a profitable state.

“Highlights include negotiating a number of critical alliance arrangements as well as improving revenue.

“Further, an aggressive growth strategy ensured that key new markets opened into the continent, making a remarkable contribution to the wider aviation value chain and unlocking profitability,” she said.

“SA Express was quite unique, in that I happened to be CEO between 2003 and 2009 and reported profit for a few consecutive years before I left for SAA. That was the period when it was tragically ravaged by corruption.”

On her new appointment, Mzimela said: “I want to ensure the company records sustained growth and will be one of the best-run entities for future generations.

“It’s time to do business differently and reimagine how TFR can be elevated to greatness.”

A seasoned executive with 29 years’ experience gained in various senior roles across diverse industries, having worked in the financial services, aviation, oil and gas sectors, Mzimela holds a BA (economics and statistics) from the University of Swaziland and management development programmes from Henley College and GIBS Business School.

– brians@citizen.co.za

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